Emerald Park Condos (Bazis International, Plaza, Metropia) - Real Estate

shakyamuni said:
White,

Your flipping days are over. One Bloor will probably be hardest hit by the correction of all projects because of the obscene prices. Look at Miami for some insight into what happens in that kind of frenzy. Developers are turning over entire buildings to the lender. I doubt this project will even get that far. In case you haven't noticed, there is a real estate recession everywhere on earth. Toronto is no different as evidenced by the plummeting sales and skyrocketing inventory. The most vulnerable spots are the highly speculative projects like this one.

You'd be very lucky if you are able to sell any unit purchased there for your total costs plus the commission.
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I flipped many units and this building is no different. I'll let you know how much I make later on. :cool: In fact I'll tell you how much my unit went up by this Friday as this Friday is when they open to the public.
 
shakyamuni said:
White,

Congratulations on your good fortunate in the past! Unfortunately you won't find the same good fortune at this stage in the real estate and credit cycle.

Your profit/loss won't be determine until you sell the unit. You won't be able to sell the unit until the building is completed. Neither of these enormously speculator-buyer driven buildings (end users don't line up for units) will be completed for years. But that time the units will be worth significantly less. There is no profit to be made here. Cut your losses if possible.
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You are wrong interms of saying I cant sell the unit until it is complete. I have 10 days to sell my unit to anther person for no additional charge from the time I signed papers. (I can do this anytime next week and make a nice profit if I wanted to once it gets jacked up) I can also sell this in a year or 6 months or whenever I want and the builder will charge me a fee of $5,000 to transfer the name of the unit to someone else. Please get your facts and info straight before you post.
 
shakyamuni said:
So you believe that you can flip the purchase contract? I'd be quite surprised to learn of anyone foolish enough to purchase a contract for either of these buildings for a higher price than the developer is asking. In fact I'd be shocked.

Please keep us informed if you actually are successful flipping a purchase contract. If there aren't enough clear signs that the market is speculator driven then surely such an event will convince even the most boisterous market proponents.
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It's very simple I'm not sure why your not following. I guess you missed one of my previous post. However READ CAREFULLY.

I bought my unit on friends and family day. Now on Thursday the price will be increased for VIP Agent Day and on Friday when it opens to the public it will increase again. This means the price will increase twice already from what I have paid for. Do you follow yet?

So say I paid $100 and it goes to $115 on Thursday and then $130 on Friday I can sell at the asking price of the builder at $130 or even a coupld $ less to make them buy from me. This means I profit around $30 as I paid $100 if I wanted to sell.

I hope I explained my self clearly and that you now understand you can only do this if you get on in the first waive price. Of course no one will buy a contract that is higher then the builder.
 
shakyamuni said:
Your argument is quite clear and I respect it. However, I completely disagree with it.

No reputable builder would allow an insider to flip a contract and undercut his own inventory. I'm certain your agreement has a clause that gives the builder the right to veto the deal at his discretion. I wouldn't count on any profit from what you've described until the funds are securely resting in your bank account.

The new condo market is toast. This ridiculously silly projects wouldn't make sense in a strong market. The builder is creating pyramid schemes all over town. Let's hope he doesn't make greater fools out of this city in its handling of this pending disaster.
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Ok and ok as you have your own opinions as well. So are you an investor in the real estate market or are you an anti investor?

If you have time read this out...

http://www.canadianbusiness.com/markets/ccn/article.jsp?content=20080708_091508_18_ccn_ccn
 
shakyamuni said:
In my opinion, someone who buys a pre-construction condo with the sole intention of selling it upon completion for more than they paid is a speculator. I am not a speculator. I recognize the existence of speculators in the market and wish them great fortune, but I believe that this is a highly risky maneuver akin to a pyramid scheme without any liquidity. You can obtain better returns with less risk and more liquidity in the public equities market.
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This has been a trend on how many investors have been making money in Toronto over the past 3-5 years. Buying on pre-construction and selling when the condo or house is build. It's easy to make 30K-60K on a new house these days and more on a new condo depending on location and project You buy the house/condo once they announce they will build a new community and sell when it is ready several months after. Doing this is way more safer then playing the stock market these days unless you just stick to bluechip stocks like RIM.

Yes it's a little gamble that I am taking assuming that the market will not crash but with such great return you have to take risk here and there. I mean if all goes well my 400K condo at Emerald Park can be well worth over 500K when it's build and to make 100K plus it only cost me 20% down. Thats fantastic I think. However if it does crash then that is something that I have to suck up and at most that will only eat into my previous profits from other condo's/houses.

***Also for the market to crash in the US is caused by their sub-prime mortgage issue. This is something that won't happen in Canada so we can't compare and say because the US has crashed then in about 1-2 years after Canada will follow. To those that think that is true they should do more research to understand why the US crashed.***

On a side note how do you think the Tridel building across the street from Emerald Park will do? I beleive both of these units will eventually raise the value of most North York Condo's in the near future.
 
white_gts said:
It's very simple I'm not sure why your not following. I guess you missed one of my previous post. However READ CAREFULLY.

I bought my unit on friends and family day. Now on Thursday the price will be increased for VIP Agent Day and on Friday when it opens to the public it will increase again. This means the price will increase twice already from what I have paid for. Do you follow yet?

So say I paid $100 and it goes to $115 on Thursday and then $130 on Friday I can sell at the asking price of the builder at $130 or even a coupld $ less to make them buy from me. This means I profit around $30 as I paid $100 if I wanted to sell.

I hope I explained my self clearly and that you now understand you can only do this if you get on in the first waive price. Of course no one will buy a contract that is higher then the builder.
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I have to wonder now why the builder would use such a strategy. I mean, there is no way a material change can occur in a few days to justify such an increase. Is the builder using ppl in "the first wave" as pawns to create artificial demand and essentially establishing a sales force that way ?? Any idea why the builder does this ??
 
lowesthangingfruit said:
I have to wonder now why the builder would use such a strategy. I mean, there is no way a material change can occur in a few days to justify such an increase. Is the builder using ppl in "the first wave" as pawns to create artificial demand and essentially establishing a sales force that way ?? Any idea why the builder does this ??
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It's not why this builder however it's all builders will do this.

From my understanding the earlier you buy a Condo/House the cheaper it will be. The first price that comes out is the bare minimum price they will sell it at. Once that selling phase is over they automatically increase the price to the next group and by doing that the first wave of buyers would have already made some profit. The cycle continues and the price keeps on getting raised which makes everyone else happy as they see that their property has gone up. Just like when you buy phase 1 of a project is always cheaper then a phase 2.

I suspect in 6 months Emerald Park would have gone up by atleast 50K in value from the initial price.
 
white_gts said:
It's not why this builder however it's all builders will do this.

From my understanding the earlier you buy a Condo/House the cheaper it will be. The first price that comes out is the bare minimum price they will sell it at. Once that selling phase is over they automatically increase the price to the next group and by doing that the first wave of buyers would have already made some profit. The cycle continues and the price keeps on getting raised which makes everyone else happy as they see that their property has gone up. Just like when you buy phase 1 of a project is always cheaper then a phase 2.
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I think builders probably still make quite a bit off the first initial sell off. They are probably trying to rake up as much cash to further finance the rest of the project. After that, they can increase it as much as they want and try to make more since the first sell off probably funded the whole project. Please let me know if I'm wrong or not, but this is what I think.

white_gts said:
I suspect in 6 months Emerald Park would have gone up by atleast 50K in value from the initial price.
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Are you talking about 50K for all units or the ones that are 500K and up. That's a big increase for those units that are 300K and lower.
 
Builders indeed make a lot no doubt.

$50K increase is not that hard as long as it is on Yonge. Remember it is all about the LOCATION. My friend has bought a condo right at Yonge and Finch last year and when he bought a 2 bedroom + den for the price of $278K it jumped $40K in 6 months from the time he bought. It's still not finished yet so I can only imagine how much it will be when completed. Also understand that he bought his unit after friends and family and vip agent preview day. So if he bought on the actual first wave of price or even second wave in price his profit would of been way more then $40K.

I'm expecting the atleast $50K jump in 6 months to be for a $400K unit. For the $300K unit I say $30K profit atleast in 6 months. I been doing this for a while and I see this building as no different. People say the market will crash but speaking with so many friends who are agents we see the value only going up. There is a reason why the market has crashed in the USA. Canada's market will catch up to Vancouver and Calgary in time.
 
shakyamuni,

I agree with you about the cycle however I don't believe the market has peeked yet. I also hope my believes are right and yours are wrong otherwise if the market is indeed declining then I'll be losing profit on my unit. :eek: If it ends up dropping I'll be holding onto it until the market goes back up of course. I just don't see it coming down anytime soon though. The market may cool off a bit with buyers hesitant to buy however we have many people in our city that would love to live in a condo like this. Look at the US stock market vs ours? Toronto is doing fine where as the US is crashing lower all year.

We have many people that purchase higher class cars over lower class cars and this condo is no different. To those who rather live in a more upscale condo in North York then Emerald Park would be the place to be. The only reason why each unit in this condo is so much is because of what they are offering and the location.

Bazis International is looking for clients that are richer then the normal average person.
 
some of you may be in for a rude awakening if you still think the market will continue to go up. Having work deeply in the mortage/finance/real estate for quite a while, i defintiely see listings lagging on for much much longer than usual and the supply level is growing rapidly in what should be a slow season (summer). Of course the general public would not see these trends until 1-2 months after b/c these news reports are always a few months behind.
 
MBS-Guru said:
some of you may be in for a rude awakening if you still think the market will continue to go up. Having work deeply in the mortage/finance/real estate for quite a while, i defintiely see listings lagging on for much much longer than usual and the supply level is growing rapidly in what should be a slow season (summer). Of course the general public would not see these trends until 1-2 months after b/c these news reports are always a few months behind.
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This may be true overall however it is not true with respects to this area (it could change at any time I will grant you). This happens to be an area I follow on MLS (C7 & C14) and when I do my usual search on apartment properties with 2 bed, 2 bath @ 350,000 and up there are now only 108 that meet this criteria. The typical number is usually between 120 and 130 but it has dropped rather steadily the last 3 weeks.
 
As of right now there are over 125 agents lining up outside for the agent day sale today which opens at 6pm.
 
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